- 84 -
1992). “Where the petitioner has failed to maintain adequate
records as to the amount and source of his income, and the
Commissioner has determined that the deposits are income, the
petitioner has the burden of showing that the determination is
incorrect”, Estate of Mason v. Commissioner, 64 T.C. 651, 657
(1975), affd. 566 F.2d 2 (6th Cir. 1977), and he must prove by a
preponderance of the evidence that the deposits came from a
nontaxable source, Rule 142(a); Kudo v. Commissioner, T.C. Memo.
1998-404, affd. 11 Fed. Appx. 864 (2001). All money deposited
into a taxpayer’s bank account is presumed to represent taxable
income, Price v. United States, 335 F.2d 671, 677 (5th Cir.
1964). Except where he bears the burden of proof, e.g., fraud,
the Commissioner need not prove a likely source of the unreported
income. Clayton v. Commissioner, 102 T.C. 632, 645 (1994);
Tokarski v. Commissioner, 87 T.C. at 77. Also, he is not
required to prove that all deposits made by the taxpayer are
income. Estate of Mason v. Commissioner, supra at 657; Gemma v.
Commissioner, 46 T.C. 821, 833 (1966).
1. Deposit on March 12, 1985, of $59,000
FINDINGS OF FACT
On March 4, 1985, a $70,000 check from Washington
International Bank & Trust Ltd. (Washington International), was
deposited into petitioner’s Freedom bank account (account No.
0110324809). Respondent did not determine that this deposit
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